In the wake of the Satyam accounting fraud, the ministry of corporate affairs has woken up to the need of stronger auditing standards and feels that the new Companies Bill would provide a stronger regulatory platform since the Centre would notify the same as part of the bill.
Currently, there is no provision for auditing standards and it is up to the Institute of Chartered Accountants of India (ICAI) to decide on the implementation of both the accounting and auditing standards. As per the new Companies Bill, 2008, there is a provision that the auditing standards will be prepared by the Centre. This would be quite relevant considering the fact that the Satyam fraud has raised questions about auditing standards and the role of auditor.
